I. On the 27/OCT/1997 between the hours of 13:00 and 14:00 o'clock
a conversation was conducted with PETROVSKI Dušan JORDAN, born on 24/JAN/1953 [sic] in Kumanovo, where he lives in an
apartment on "Pitu Guli" street number 15; Macedonian, citizen of the
Republic of Macedonia; married, father of two children; owner of the company "Snežana
i Sinovi" and the restaurant "Baba Cana"; who used to be entered
into Preliminary Treatment under the
pseudonym "CRNI", and is currently deregistered.

No operative expenses were incurred.

The Operative Memo has been submitted on 28/OCT/1997.

II. The conversation was conducted at our initiative; and
had the purpose of obtaining security-interesting findings and intelligence from
possibly realized assignments which had been delegated to [Petrovski] in the
course of our last contact, on 03/SEP/1997 in the restaurant "Baba Cana";
[these are the same assignments] which had been delegated to him, and which he
accepted in the course of our contact on 19/DEC/1996, in the same restaurant,
and in the presence of the Lead Inspector xxxxxxxxxxxxxxxxxxx. The assignments delegated are
concerning the contact which he was supposed to carry out with Ogñan Petkov
from the Bulgarian Trade Mission in Belgrade, as well as his contacts with
Angel Dimitrov, Ambassador {Next two
lines missing}

…Belene, with whom because of misunderstandings in the
financial cooperation, their mutual relation has ceased since 1993, because he
still owes him a large amount of money, because of which proceedings have been
commenced by [Petrovski], through his legal representative.

III. FINDINGS AND INTELLIGENCE OBTAINED:

The expected findings and intelligence were not obtained in
the course of the conversation, due to the fact that Petrovski failed to
realize the agreed contacts and conversations with Ogñan Pektov and Angel
Dimitrov, which [Petrovski] claims is the result of his dire financial straits,
due to which he could not afford to cover the expenses of the trip; because of
which he and his wife are now operating the restaurant by themselves with no
hired help; that they are keeping the restaurant "Baba Cana" open for
business even though it is not turning a profit, because they have to do
something, and to hope for better times ahead; and because they lost faith in
the institutions of the system of the Republic of Bulgaria, as well as of those
of the Republic of Macedonia.

The judicial institutions of the Republic of Macedonia—the
courts, [according to Petrovski] are wholly ineffective. The proceedings
commenced by [Petrovski] against XXXXXXXXXXX [OT "Rimljanin"] and Dragan Daravelski
from Kumanovo are kept at the preliminary phase, since despite the scheduling
of six different hearings, the defending parties have failed to appear, due to
an excuse that the Court was not able to serve them with notices to appear; due
to which Petrovski considers that this institution is likewise corrupt, and is
under the impression that the presiding judge is colluding with the defendants.

At the end of the conversation Petrovski asked for our help,
if at all possible for the DBK to exert influence upon the court to speed up
the proceedings and bring them to a conclusion.

His request was accepted by us; while at the same time he
took it upon himself as an assignment and an obligation to call by telephone
and schedule a contact with Ambassador Angel Dimitrov, in Skopje, where he
would present his case concerning the company "Konstantinovi 90" and would
ask for the Ambassador's aid to have this dispute resolved as quickly as
possible.

IV. OPERATIONAL COMMENTARY:

The sort of dual behavior exhibited by Petrovski is
suspicious. He has made promises on a number of occasions to materialize the
assignments which have been delegated to his, which would be of his benefit as
well as of the DBK's; while he has made no effort at all at completing his
assignments, finding an excuse in his financial difficulties; which excuse we
cannot wholeheartedly accept.

It has been agreed that we contact Petrovski again on
30/OCT/1997 at the restaurant "Baba Cana".